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|Title:||Public utility beta adjustment and biased costs of capital in public utility rate proceedings||Authors:||Michelfelder, Richard A.
|Keywords:||Capital Asset Pricing Model;CAPM||Category:||Economics and Business||Field:||Social Sciences||Issue Date:||1-Nov-2013||Publisher:||Elsevier||Source:||Electricity Journal, 2013, Volume 26, Issue 9, Pages 60-68||metadata.dc.doi:||http://dx.doi.org/10.1016/j.tej.2013.09.017||Abstract:||The Capital Asset Pricing Model (CAPM) is commonly used in public utility rate proceedings to estimate the cost of capital and allowed rate of return. The beta in the CAPM associates risk with estimated return. However, an empirical analysis suggests that the commonly used Blume CAPM beta adjustment is not appropriate for electric and electric and gas public utility betas, and may bias the cost of common equity capital in public utility rate proceedings.||URI:||http://ktisis.cut.ac.cy/handle/10488/9839||ISSN:||10406190||Rights:||© 2013 Elsevier Inc.||Type:||Article|
|Appears in Collections:||Άρθρα/Articles|
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